Martin Streeter was the payroll manager for XLR Innovations. The CEO consistently praised Streeter for his hard work and dedication. Streeter designed and implemented a new payroll system that only he fully understood. In fact, Streeter controlled the system to the extent that he personally filled out weekly time sheets for each of the 150 employees. He was such a loyal employee, that when he was on vacation, he came back to do the payroll to ensure there was no delay in the direct deposit of employee paychecks. Unfortunately, it was discovered that Streeter embezzled more than $800,000. He added fictitious employees to various departments in the organization. He routinely inflated the number of hours worked by several employees and split the overpayments with those individuals The fraud was discovered when Streeter was in a serious car accident that left him in a coma for 2 days. While the controller was completing the payroll, she noticed that several employees were being paid unusually high amounts. In some cases, employees earning $15 an hour received weekly paychecks over $4,000. After a criminal investigation was conducted, charges were filed against Streeter and all involved in the scandal confessed Required: 1. Consider the principles of internal control. What internal control weaknesses were evident in the payroll system? 2. Make recommendations for procedures to improve the payroll system. Martin Streeter was the payroll manager for XLR Innovations. The CEO consistently praised Streeter for his hard work and dedication. Streeter designed and implemented a new payroll system that only he fully understood. In fact, Streeter controlled the system to the extent that he personally filled out weekly time sheets for each of the 150 employees. He was such a loyal employee, that when he was on vacation, he came back to do the payroll to ensure there was no delay in the direct deposit of employee paychecks. Unfortunately, it was discovered that Streeter embezzled more than $800,000. He added fictitious employees to various departments in the organization. He routinely inflated the number of hours worked by several employees and split the overpayments with those individuals The fraud was discovered when Streeter was in a serious car accident that left him in a coma for 2 days. While the controller was completing the payroll, she noticed that several employees were being paid unusually high amounts. In some cases, employees earning $15 an hour received weekly paychecks over $4,000. After a criminal investigation was conducted, charges were filed against Streeter and all involved in the scandal confessed Required: 1. Consider the principles of internal control. What internal control weaknesses were evident in the payroll system? 2. Make recommendations for procedures to improve the payroll system